Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $79,000, and it has claimed $42,600 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.)

Required:

1. a. Assuming that Hauswirth receives $54,100 in cash for the warehouse, compute the amount and character of Hauswirths recognized gain or loss on the sale.
2. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $54,100, compute Hauswirths realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.
3. c. Assuming that Hauswirth receives $35,000 in cash in year 0 and a $75,500 note receivable that is payable in year 1, compute the amount and character of Hauswirths gain or loss in year 0 and in year 1.

• Req a
• Req b
• Req c

Assuming that Hauswirth receives $54,100 in cash for the warehouse, compute the amount and character of Hauswirths recognized gain or loss on the sale.

Recognized Gain/(Loss)	$11,300
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)	$11,300
1231 gain/(loss)	$0

• Req a
• Req b
• Req c

Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $54,100, compute Hauswirths realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.

Gain realized	$30,350
Gain recognized
Deferred gain
Adjusted basis in new property

• Req c

Assuming that Hauswirth receives $35,000 in cash in year 0 and a $75,500 note receivable that is payable in year 1, compute the amount and character of Hauswirths gain or loss in year 0 and in year 1.

Description	Amount		Character
Sales price
Original Basis
Accumulated Depreciation
Adjusted Basis
Gain (Loss) Realized
Depreciation Recapture
Gain Eligible for Installment Reporting
Gross Profit Percentage		%
1231 gain recognized in year 0
1231 gain recognized in year 1